We engage contractor, who supplies labour for the specified job. Billing is done by contractor & TDS is deducted from the bill amount every month.
When any contracted employee of that particular contractor retires, we give credit to contractor for the Gratuity amount to be paid to the retired contract employee & then issue cheque to contractor for gratuity amount only.
In this case no other payment is made to contractor as his commission & profit.
My Query is
1) Whether this amount of Gratuity paid through contractor to retired contracted employee will attract any TDS u/s 194(c)?
CAclubindia
